In March, ministers announced plans to ban the sale of new leasehold homes, describing it as the end of a “feudal system”. However, only 36% of landlords surveyed said they believed this goal was achievable.
Under the current leasehold structure, freeholders own the building while leaseholders purchase the right to occupy individual flats for a fixed period. The government has pledged to replace this with a commonhold system, giving homeowners shared ownership and control over their buildings.
A white paper published earlier this year confirmed plans to ban the sale of new leasehold flats and introduce a new legal framework to “reinvigorate” commonhold ownership.
Landbay’s research, which polled landlords owning around 3,000 properties across England and Wales, found regional differences in confidence levels. Landlords in the north of England were the most optimistic, with 55% saying they did not believe the reforms were achievable, compared with 75% in Wales.
Individual landlords were also more positive, with 58% doubting the government could meet its target, compared with 65% of those operating through limited companies.
When asked what they disliked most about leasehold tenure, more than half (53%) cited high service charges as their biggest frustration. Poor infrastructure and neglect, as well as difficulty remortgaging, were each mentioned by 14%, while 7% pointed to the cost of ground rent. Just 11% said they had no complaints about the system.
Rob Stanton, sales and distribution director at Landbay, said:
“The government’s ambition to abolish leasehold and transition to commonhold is a bold step towards modernising property ownership in the UK. But our research suggests there is a lot of scepticism out there among landlords, with nearly two-thirds doubting it can be achieved by the end of this parliament. While the intent to reform a system often seen as outdated is welcome, delivering such sweeping changes requires robust implementation.”
He added: “Our research highlights the deep concerns over the leasehold system, with expensive service charges being landlords’ primary grievance, alongside issues like neglect and remortgaging challenges. The government’s push for commonhold is a step in the right direction. But the lack of confidence among landlords, particularly in Wales and among those using limited company structures, highlights the need for a clear, practical roadmap. Without robust policy execution, the transition risks stalling, leaving landlords and leaseholders in limbo.”
